Amid the collapse in crypto prices after the October and November 2021 bull run, US SEC data reveals that Coinbase executives have been on the sell side for the past three months. Overall, insiders dumped over $ 90 million from COIN.
COIN Sell-off By Executives
According to a recent filing with the SEC, Coinbase co-founder Fred Ehrsam and Chief Product Officer Surojit Chatterjee together sold COIN stocks worth over $40 million in December 2021.
Ehrsam and Chatterjee sold shares valued at $ 31,369,991 and $ 9,007,797, respectively. Chief Accounting Officer Jennifer Jones sold COIN shares worth $ 253,606 during the month.
This sell-off is insignificant compared to the overall transactions in Coinbase stocks. However, analysts believe it does indicate dwindling confidence of insiders and early investors in the first publicly traded crypto exchange in the States.
Ehrsam leads the sale
The documents show that Ehrsam made the biggest single sale on November 4 last year, worth more than $ 63 million.
The sell-off by Coinbase insiders has totaled over $331 million in the last three months, while no purchases have been made by them during that period.
The United States SEC’s guideline requires directors, officers of the company, and shareholders with 10% or more of outstanding shares to report their trading details to the regulator.
COIN Stock in Choppy Waters
Since its listing in April 2021, the performance of Coinbase (COIN) stock has been in line with the overall market movements.
According to public data, the newly listed stock opened at $ 381, peaked at $ 430, and closed its first trading day at $ 310.
However, by the first week of May, it slipped below $300 as bitcoin had begun its nosedive. On May 4, COIN stock opened at $292, and despite initially rising, it closed the day at $275. It again attained the $300 territory on October 19, opening at $300 and rising to $308.
Riding the bullish market sentiment in October and November, COIN maintained the $ 300 territory with a peak on November 9 when it jumped to $ 369. However, the correction in the crypto market that began in early December also had an impact on stocks. COIN spent most of its time below $ 300 and even fell below $ 240 on Jan. 7.
